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Data Processing Era, Micro Era, Network Era, - Fall 2007 | ISM 50, Assignments of Accounting

University of California-Santa CruzAccounting
Prof. John Musacchio

Material Type: Assignment; Professor: Musacchio; Class: Business Information Systems; Subject: Information Systems Management; University: University of California-Santa Cruz; Term: Fall 2007;

Typology: Assignments

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ISM 50 - Business Information Systems
Lecture 3
Course Instructor: John Musacchio
October 4, 2007
Outline For Today
Class Announcements
Student Presentations
Systems Concepts (O’Brien Ch1)
Ch 2 O’Brien
Class announcements
Due Today
Project Preferences
Assignment 1: Resume and Cover letter
For Next time Read:
Chapter 2 - Section II of O’Brien
STUDENT PRESENTATIONS
Data Processing Era
Big companies introduce primitive
computers, originally developed for military
Architecture: Mainframe with time shared
terminals
terminals
“No one ever got fired for buying IBM”
Micro Era
1981 -- IBM introduces PC
“Killer applications” like spreadsheets make
end users buy them
end users buy them
Different copies of data on different
machines
Data processing Managers Upset
pf3
pf4
pf5
pf8

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Download Data Processing Era, Micro Era, Network Era, - Fall 2007 | ISM 50 and more Assignments Accounting in PDF only on Docsity!

ISM 50 - Business Information Systems

Lecture 3

Course Instructor: John Musacchio

October 4, 2007

Outline For Today

„ Class Announcements

„ Student Presentations

„ Systems Concepts (O’Brien Ch1)

„ Ch 2 O’Brien

Class announcements

„ Due Today

‰ Project Preferences

‰ Assignment 1: Resume and Cover letter

„ For Next time Read:

‰ Chapter 2 - Section II of O’Brien

STUDENT PRESENTATIONS

Data Processing Era

„ Big companies introduce primitive

computers, originally developed for military

„ Architecture: Mainframe with time shared

terminalsterminals

„ “No one ever got fired for buying IBM”

Micro Era

„ 1981 -- IBM introduces PC

„ “Killer applications” like spreadsheets make

end users buy themend users buy them

„ Different copies of data on different

machines

„ Data processing Managers Upset

The Network Era (1995 - ?)

„ After chaos of Micro Era, organizations

converged on Client Server networked

architectures

‰ Client PC allowed user to have direct access to her own

computercomputer

‰ Server housed organizational data

„ Because of Success of Internet technologies…:

‰ UNIX, HTML, TCP/IP

„ … IT managers used these technologies for

internal networks – “intranets”

The Network Era (1995 - ?) – Internet Phenomenon

„ Internet built on open standards

‰ Different than control-oriented development

philosophy

‰ Benefits: Scalable, Extensible, …

„„ Lots of vendors selling interoperableLots of vendors selling interoperable

equipment

‰ More decisions to make than the DP manager of

the 1960s!

‰ Many companies started and flourished.

Cisco

„ 1984 Founded by Leonard Bosack and

Sandra Lerner (Stanford IT Staff)

„ Developed a Router

‰‰ A device to forward data packets from oneA device to forward data packets from one

network to another

„ By 1998, Cisco had a market value of

$100 billion!

Netscape

„ Founded by Marc Andreessen and Jim

Clark

„ Browser based on Original Mosaic

„ IPO in 1995

‰ First day went from $28 -> $75!

‰ The company's revenues doubled every quarter

in 1995!

„ Excitement triggered the dot-com boom.

‰ Hundreds of companies started, most didn’t

survive…

The network era

„ The network era permitted new ways of

doing business

‰ Employees could check on their benefits with a

web browser

‰ Cust mCustomers could s c uld “s lf s self-serve” themselves v ” th ms lv s

„ In 1998, 70% of Cisco’s $800 million of service

revenue was provided over Internet, by allowing

customers to access their intranet.

‰ Wal-Mart used point of sale data to drive

supplier replenishment (CRP)

The network era

‰ Amazon sold books with minimal inventories.

‰ Levi Strauss used geo-demographic database to

match supply and demand in each store

‰ …and many more examples!

Why Does a Company Need to

Make a Profit?

„ An obligation to owners/shareholders

‰ Owners and shareholders have invested money and time.

They expect to see something in return.

„ Survival requires continued investmentsq

‰ new product development.

‰ facilities and equipment.

‰ acquiring other companies.

‰ Invest in employees (training and salary increases)

„ Stakeholders want to see performance before

investing in a company’s future.

Recall: What is a System?

System Definition: A group of interrelated components

working toward the attainment of a common goal by

accepting inputs and producing outputs in an organized

transformation processp

•Input

•Processing

•Output

•Feedback

•Control

Business as a system

A business is an organizationalsystem

where economic resources (input) are

transformed by various organizational

processes (processing) into goods andprocesses (processing) into goods and

services (output).

A Business is a System

• Some business basics while remembering the

importance of making a profit

Helps to remember and to tie together:

importance of making a profit.

• The understanding of business functions.

• The appreciation for the importance of

business processes.

Business as a system

A business is an organizational system where

economic resources (input) are transformed by

various organizational processes (processing)

into goods and services (output)into goods and services (output).

Information systems provide information

(feedback) on the operations of the system to

management for the direction and maintenance of

the system as it exchanges inputs and outputs

within its environment.

Important Things to

Understand

Two terms:

1) business functions

2) business processes

Will be frequently used throughout this course.

It would be a good idea to make absolutely sure

that you know what they are.

Business Functions

Function: A group of people with

related skills (specialized) seems to be

a good starting point in understandingg g p g

functions but this is a fairly loose

definition.

Business Functions

„ Examples

‰ Design

‰ Engineering

‰‰ SalesSales

‰ Finance

‰ Marketing

‰ Etc…

What prompts the creation and

justification of business functions?

„ Specialization

„„ SizeSize

„ Efficiency

„ More cost effective

Business Processes

What is a business process?

„ A designed succession of actions to the

accomplish of some result in a business.

„„ ExampleExample

‰ Order Fulfillment

A Business Process

Customer

Sales

Order

Take Order

Enter Order

Print Invoice

Finance

Inventory Control

Warehousing

Credit Check

Check Stock Print Packing list

Find Goods

Ship

Tell Mfg. to make order

Business Functions

Cross Functional Process

„ A business process that crosses over

multiple functions

„„ Are all business processes crossAre all business processes cross

functional?

Information System Roles

Competitive

Advantage

Effectiveness

Efficiency

A few Information System

Categories…

Transaction Processing Systems

„ Record and Process data resulting from

business transactions

„ Example: Credit card trans. processing

„„ 2 types2 types

‰ Real-time

‰ Batch-Processing

An example: Process Control Systems

„ Monitor and control physical processes

„ Example:

An example decision support systems What is Business Process Reengineering?

„ A fundamental rethinking and redesign of

business processes

„ Minor improvement to a business process is

often called streamlining the business

process

Business Process Example

Customer

Sales

Order

Take Order

Enter Order

Print Invoice

Finance

Inventory Control

Warehousing

Credit Check

Check Stock Print Packing list

Find Goods Ship

Tell Mfg. to make order

Business Functions

A Streamlined Business Process

Customer

Sales

Order

Take Order

Enter Order

Print Invoice

Automatic Credit Check

Finance

Inventory Control

Warehousing

Credit Check

Check Stock Print Packing list

Find Goods Ship

Tell Mfg. to make order

Business Functions

A Reengineered Business Process

Customer

Sales

Order On web

Automatic Credit Check Automatic Checking of Stock

Finance

Inventory Control

Warehousing

Print Packing list And invoice

Find Goods

Ship

Inform Mfg. to replenish stock

Business Functions^ Automatic Checking of Stock

Role of Information Systems in

Business Process Reengineering?

„ IS often enables complicated business

processes be made more simple.

„ IS doesn’t always drive business process

reengineering though…